December could be a good month for the stock market, but there's one big risk

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Stocks have had a bang-up year so far, and they're heading straight into the month that is often the best of all.

In the coming week, investor focus will move more intently to the topic of trade, and that is what will make or break the rally at year-end.

"December is the best month of the year. The S&P is up 1.6 percent on average. It also has the highest frequency of advances, up 76% of the time," said Sam Stovall, chief investment strategist at CFRA. December is also the least volatile month of all, but it could see some bumps. Stovall also looked at sector performance for December, going back to 1995 and found that the worst performing S&P sub-industry sectors were retail oriented, and are highly dependent on good holiday sales. On average, computer and electronics retailers were weakest, off 4.5%, followed by leisure products off 2.2% and department stores, off 0.9%. Specialty stores and apparel and luxury goods were also among the 10 poorest performers.

Stocks were on track Friday for their best monthly performance since June. The S&P 500 was up 3.6% and the Dow was up 3.7% for the month of November so far. Biotech was a top performer, helping lift the Russell 2000, which gained 4.3% in November. The IBBThe big risk to the market in December is the outcome of trade talks, but economic reports will be important as investors continue to assess whether the Fed was right in ending its rate cuts.

 

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BernieSanders

The view of the world at CNBC is apparently limited to the trade relationship between America and China.

Best President everrrr

Yes, and like Frosty the snowman...those 'gains' are bound to melt away...:)

Just one?

WTF? Where are all the tourists taking pictures?

I'm still waiting on this economy to lower prices being that the stock market is so great, an the tax cut big business received. Another Republican lie.🤔

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